100% de satisfacción garantizada Inmediatamente disponible después del pago Tanto en línea como en PDF No estas atado a nada
logo-home
COMPLETE Summary all lectures Strategy for premaster 2020/21 - all you need to know 15,29 €
Añadir al carrito

Notas de lectura

COMPLETE Summary all lectures Strategy for premaster 2020/21 - all you need to know

 62 vistas  1 veces vendidas
  • Grado
  • Institución
  • Book

Summary of al lectures sheets examples things mentioned book

Vista previa 4 fuera de 112  páginas

  • 4 de enero de 2021
  • 112
  • 2020/2021
  • Notas de lectura
  • Desconocido
  • Todas las clases
avatar-seller
Week 1: Introduction and External analysis

Videoclip 1: Chapter 1 - Competitive advantage
Economic Value Created
“Economic value created” is the difference between perceived benefits gained
by a customer and the full economic costs




D=Demand, P=Price, MC=Marginal Cost, ATC=Average Total Costs

Left: Demand-curve is going down, higher price = less demand
MC and ATC cross: average total cost is the minimum; amount quantity
that will be solved

Total of economic value created (block + triangle):
Triangle: consumer surplus
Block (bottom): producer surplus

Economic Value created Example
 Value = 40 euros (how much are people willing to pay)
 Price = 30 euros
 Cost = 15 euros

 Consumer Surplus (value – price): 40 – 30 = 10 euros
 Producer Surplus (price – cost): 30 – 15 = 15 euros
 Economic value created (consumer + producer surplus or value – cost): 40
– 15 = 25 euros

Visualization of competitive advantage
Difference in a firm’s economic value created and the economic value created by
its rivals




1

,Green is bigger  competitive advantage




2

,Measuring competitive advantage
Always measured relative to other firms

Accounting Measures (Usually easy to calculate)
 Profit ratios (revenue/assets or sometimes employees)
 Liquidity ratios (how flexible in short-term money, paying short-term
debts)
 Leverage ratios (how easily get more money to finance new investments)
 Activity ratios (how quickly inventory is used; smaller things; processes)
Competitive advantage: Higher return on assets (ROA) than industry average
return on assets

Economic measures % (Typically not included in accounting measures)
 The cost of debt
 The cost of equity
 Weighted average cost of capital (WACC)  Percentage that investors
want back from the busines. If your returnal asset is higher than what
investors want  competitive advantage

Exam example:
WACC < ROA < Industry Avg. ROA
- WACC<ROA: in economic measures  firm is performing above
expectations
- ROA<Industry: in accounting measures  not positive, competitors on
average earn more

Competitive advantage Economic returns
Advantage Above normal
 Exceeding expectations
Parity Normal
 Meeting expectations
Disadvantage Below normal
 Failing expectations
Organization with competitive advantage  other organizations are pulled to
these activities, also coming in, more competition, performance goes down  on
the long run an organization can only expect parity

Example: Netflix

Intended versus emergent strategies




3

, How did it happen that a strategy emergent over time?

Videoclip 2: External analysis – Strategy

Why external analysis?
Make more informed strategic choices
 Discover opportunities and threats (should be trends)
 Analyze potential for profits
 Understand the nature of competition

Levels of analysis
 General environment (biggest outside border)
 Industry (part of task environment; are also the people that live close to
organization e.g., Efteling wanted more land, people living around don’t
want that)
 Strategic group (similar strategic dimensions as your organization; e.g.,
Albert Heijn and Lidl)
 Individual firm (internal/competitor)
Mobility barriers: Barriers between strategic groups that make it harder to join
another strategic group.

Videoclip 3: General external environmeneral environment

General External environment
Focus on trends/changes. Broader than the industry itself!

Example:
1. Boeing: airplanes went down
 really bad for the industry,
but it should not be something
that is in the general
environment
2. Soft drink industry: political
organizations want to do
something about sugar in food
 general environment

Concepts of the general
environment (DESTEP)

 Demographics: Only numbers! Age, sex, marital status, income, ethnicity
and other personal attributes that might affect buying patterns (happens a
lot that something that’s in demographics is also in another category, e.g.,
number of divorces  also in economic, cultural)
 Culture: values, beliefs and norms that guide behavior in society
 Economic climate: the overall health of the economic systems within
which a firm operates (e.g., recession, threat for a lot of organizations, but
opportunity for Aldi/Lidl)
 Political and legal conditions: the law and legal system’s impact on
business, together with the general nature of the relationship between
government and business




4

Los beneficios de comprar resúmenes en Stuvia estan en línea:

Garantiza la calidad de los comentarios

Garantiza la calidad de los comentarios

Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!

Compra fácil y rápido

Compra fácil y rápido

Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.

Enfócate en lo más importante

Enfócate en lo más importante

Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable. Así llegas a la conclusión rapidamente!

Preguntas frecuentes

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

100% de satisfacción garantizada: ¿Cómo funciona?

Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller vvi. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for 15,29 €. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

45,681 summaries were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Empieza a vender
15,29 €  1x  vendido
  • (0)
Añadir al carrito
Añadido